Our Verdict
A Regions Bank business loan is an attractive option for businesses in need of funds to expand or run. However, it can only be an option worthy of your consideration if your business domiciles is within the 16 States of the Southeast and you have a Regions Checking account.
Regions bank runs both commercial lending and SBA loan products with favorable and attractive terms
Pros
- Has more than 1,300 branches of their bank in the South-East region
- Runs 24/7 customer service
- Operates a free savings account
- Has varieties of account options for customers
- Waives monthly fees with its LifeGreen Savings
- Has easy account opening requirements
- Has a reasonably low APR with 0% APR in the first 6 months of Credit Card use
- Does not charge annual fees on Credit Cards payment
Cons
- Does not include ATM or debit cards for operators of money market account
- Account operators have to pay monthly fees
- Pays low-interest rates on money markets, savings, and CDs
- You can’t access the loan if you don’t maintain an account with Regions
- The loan is only available in the 16 Southeastern and Midwest States
Who This Product Is Best For
Regions business loan products are best for you if you’re a business owner who:
- Wants to raise funds to purchase equipment, for working capital, technology investment, and project financing
- Does not mind paying the loan origination fees
- Is not intending to pay off their small business loan before time or is ready to pay the prepayment fees
- Have accounts with Regions Bank and like their service.
- Is within the Southeastern or Midwestern State
Who This Product Isn't Right For
Think twice before you apply for Chase’s loan product if you’re a business owner who:
- Has a bad business credit score.
- Wants a bank that declares fees and rates up-front.
- Prefers a lender who does not charge origination or prepayment fees.
What This Product Offers
- SBA loans. The Small Business Administration, SBA, encourages lenders to grant loans (usually with lower rates) to small businesses and reduces the risk of the lenders by guaranteeing the loans.
- Term loans. When you need a specific amount of cash for a specified period and you agree on a repayment schedule with the lender either for a fixed or floating rate.
- Line of Credit. With a line of credit, you can have a preset maximum amount of money you can draw from any time you need it until you reach the limit. You pay back whatever you draw to bring the limit up again.
- Business Credit Card. You use Credit cards generally to organize business expenses but also as a means to get funds in advance and provide a cushion for your business.
- Seasonal Loan. With this loan, you can pay your expenses when your business income is high to be able to draw when income fluctuates. It’s usually like a revolving line of credit.
- Bridge Loan. When you anticipate permanent financing, you can use a bridge loan pending the time you secure the permanent financing. A bridge loan is usually taken out between 2 weeks to 2 years.
Product Details
Line Of Credit
Where the funds you need a credit line for are not much, you can consider the Regions Bank Line of credit; a small dollar line of credit often for working capital rather than for capital projects. The Line of Credit is revolving and has a credit limit of $500 up to $3000.
The amount that the line of credit advances to you is transferrable within your Regions Online Banking as much as the multiple numbers as you need them; however, you cannot make advances beyond your credit limit. Regions normally charge interest fees on each amount of advancement you make, so you should borrow just what you need.
At the normal cause of the event, you pay an annual fee of $25, however, if your balance exceeds your credit limit, you pay an over-limit fee of $29 and where it takes you beyond 10 days after your due date to pay up, you will pay $29 Late payment fees.
Loan amount $500 to $3000
APR 21.90%
Terms Revolving
Repayment schedule Monthly
Fees $25
Availability 16 states
Business Credit Cards
Regions also offer business credit card solutions to not only help organize your business but also provide cash in advance for businesses or even pay bills for services without paying an annual fee.
This Business credit card service is available in Visa Business Credit Card or Visa Business Enhanced Credit Card.
Visa Business Credit Card
APR 0% for the first 6 months
13.99%-24.99% (Creditworthiness)
28.74% (Cash Advances)
Annual Fees $0
Balance Transfer Fee $10 (Cash Advance Fee) or 4% of CAF
Late Payment Fee Up to $49
Availability 16 states
Visa Business Enhanced Rewards Credit Card
APR 0% for the first 6 months
15.99%-26.99% (Creditworthiness)
28.74% (Cash Advances)
Annual Fees $0
Balance Transfer Fee $10 (Cash Advance Fee or Balance Transfer Fee) or
4% of Cash Advance Fee or Balance Transfer Fee
Late Payment Fee Up to $49
Foreign Transaction Fee 3% of the amount of transaction in dollars
Availability 16 states
Commercial Lending
Regions also offer several options of commercial lending to businesses to help them meet their growth plans both long-term and short-term. These commercial lending are Lines of credit, Term Loans, Seasonal Loans, and Bridge Loans. The different loans and their details are tailored in line with the specific business needs of the users.
To get the full details of the various Regions commercial lending you have to contact the in-house Commercial Lending Expert from Regions Bank
SBA Loans
Regions operate the SBA Express loans for small businesses with the loan amount from $100,000 to $500,000; the SBA 504 loans for larger purchases of fixed assets with a loan amount that is up to $12.5 million (although 40% of the loan amount comes from the CDC while participating lender contributes up to 50% while the borrower also adds the remaining 10% or 20% as the case may be) and then the SBA 7(a) loans also for purchases and general business purposes with a loan amount from $350,000 up to $5 million) depending on what your business requires.
The Terms of the SBA loans range from 5 years up to 25 years depending on the options. For instance, the terms for the Line of Credit of the SBA Express Loan is from 5 years revolving with 10 years of maturity however Real Estate Loans under both the SBA 7(a) and SBA 504 have 25 years full amortization period.
Loan amount $100,000 to $12.5 million (option specific)
APR Fixed and Varied rates options
Terms From 5 years to 25 years
Fees Fixed and Varied rates options
Availability 16 states
Funding speed Varies
Where This Product Stands Out
Fair and Favourable terms
There are Regions bank loans that extend up to 10 years of repayment and 25 years amortization period. This encourages a borrower to attempt to take a larger amount of loans and still keep monthly payments affordable while they expand.
Several Lending options
Regions provide several lending products to fit different customer needs and circumstances. If you need funds for equipment financing, term loans, SBA loans, business lines of credit, seasonal loans, and bridge loans, just check the several options available and compare them with your eligibility and suitability for your business.
Where This Product Falls Short
Limited Offer for Non-Account holder
Regions make getting business loan products quite difficult for non-holders of Regions accounts as such it is not available to a lot of people. It means if you have not been running a Regions bank account, this product is not for you.
Not available in Many States
Regions business loan is only available in 16 states.
How to Qualify for This Product
Even though you cannot specifically see the qualification for the product you want on the Regions Bank website, there are qualifications common with business loans and some features peculiar to Regions Bank
Assets Accounts
Peculiar to Regions Bank, to get a business loan product you must be running an asset account like a checking account with Regions Bank.
Credit History
Regions bank doesn’t post the credit score that can qualify you for loans but generally, a credit score of say 580 to 670 and above can boost your chances of getting approval. Contact Regions representative directly to discuss your needs and know the personal credit score range you require so you can get any of Range’s business loans.
Longevity in Business
To get a business loan product anywhere, how long you have been in business is a very important question to answer because generally, lenders will not advance loans to a business novice. Regions will likely not advance loans to a business not up to 2 years of existence
Healthy Profit and Loss Statement
If your business is struggling to make ends meet, taking out a loan is not the best option, but first, find out what might be responsible for the continuing loss in revenue before you take an initiative to apply for loans. Lenders don’t usually want to give out loans to struggling businesses and it’s obvious Regions will not be an exception.
How to Apply for This Product
Even though Regions does not display its application requirements, contact any representative to tell you the documents you need for the type of loan you request. However, banks generally require:
- Bank Statements of Account.
- Profit and Loss Statements.
- Balance Sheets
- Statement of Owners Equity
- Recent personal and business tax returns.
- Address, social security number, SSN, etc.
- Business Plan
Alternatives to This Product
Bluevine
Bluevine is one of the most prominent banks when it comes to seeking business lines of credit up to $250,000
SmartBiz
SmartBiz is the best when it comes to granting Small Business Administration Loans of up to $5 million with terms of 25 years.
Customer Reviews
Better Business Bureau (BBBs) rating for Regions is 3.08 out of 5 stars from the average of 433 customer reviews. In three years, about 1026 clients made complaints.
Regions score the average rating of 1.7 out of 5 on Trust Pilot, according to 204 customer reviews.
Methodology
In reviewing Regions business loans based on 20 data points in the categories of loan details, we used loan costs, eligibility and accessibility, customer experience, and the application process. We rated Region’s business loans based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, and applicable fees. We also looked at minimum credit scores and time in business requirements and the geographic availability of the lender.
Finally, we evaluated Regions business loans customer support tools, borrower perks, and features that simplify the borrowing process—like online applications, prequalification options, and mobile apps.
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